SEBI Relaxes Rules for Stock Brokers in GIFT City, Scraps NOC Requirement

In a move to streamline operations in the GIFT City, markets regulator SEBI on Friday announced that stock brokers can now operate in the International Financial Services Centre (IFSC) without needing prior approval. According to SEBI’s latest circular, brokers are allowed to carry out securities market-related activities through a separate business unit (SBU) within the same stock broking entity, or through a qualified branch considered as an SBU. SEBI also clarified that brokers may continue using a subsidiary to operate in the GIFT-IFSC. The choice of structure either through an SBU or a subsidiary is left to the discretion of the broking firm.